Question: Aggregate claims follow a lognormal distribution with parameters u = 7.5.0 = 2. The full credibility standard is set according to the methods of limited

Aggregate claims follow a lognormal distribution with parameters u = 7.5.0 = 2. The full credibility standard is set according to the methods of limited fluctuation credibility so that actual aggregate claims are within 10% of expected aggregate claims 95% of the time. Determine the number of exposures needed for full credibility

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The Splash makes large fiberglass swimming pools and uses machine hours and direct labor hours to apply overhead in the Production and Installation departments, respectively. The monthly cost formula...

Aggregate claims follow a lognormal distribution with parameters ,u, = 7.5. 0' = 2. The full credibility standard is set according to the methods of limited uctuation credibility so that actual...

The number of claims per exposure follows a Poisson distribution with a mean of 10. Claim sizes follow a lognormal distribution with parameters u=1 and o=1. The number of claims per exposure and...

Claims for a group follow a lognormal distribution with = 7, = 1.2. Claim counts follow a Poisson distribution. The manual premium is 20,000 per insured. 3356 claims are observed, with average...

nodes, but at least its bias can be quantified by Markov Chain L. INTRODUCTION analysis and thus can be corrected via appropriate re-weighting The popularity of online social networks (OSNs) in...

FUEL FOR THOUGHT: CLEAN GASOLINE AND DIRTY PATENTS SCOTT H. SEGAL INTRODUCTION One of the most successful air pollution control programs devised for use in the United States is the federal...

Examine the pricing strategies in the gasoline market. Make sure to address the following topics: In the article, (Mixed) Strategy in Oligopoly Pricing: Evidence from Gasoline Price Cycles Before and...

Card, D., Krueger, A.B. (1994). Minimum wages and employment: a case study of the fast-food industry in New Jersey and Pennsylvania. American Economic Review, 84(4), 772-93. Once you have read your...

Set Student Name: 1. Answer true or false for each part, and if false, explain your answer. a. The point estimate for the population mean, , of an x distribution is x-bar, computed from a random...

1. If the demand for widgets is inelastic, then when the price of widgets increases, revenues will: a. decrease b. remain the same 0. increase d. increase, unless there are substitutes for widgets e....

Do you agree that managing supply chains effectively is an extremely complex task, particularly in a global context? What are the different factors which should be considered in supply chain...

In a transistor, the base-emitter junction and the base-collector junction are essentially diodes. Are these junctions reverse-biased or forward-biased in the application shown in Fig 29-32?

Given current earnings ( E 0 ) of $ 3 . 5 0 and a growth rate of 6 percent, how much should yoube willing to pay for the stock if the P / E ratio is 1 5 ? a ) $ 2 8 . 7 5 b ) $ 2 0 . 5 4 c ) $ 2 3 ....

9. (15 points) A company is considering a new project that requires an investment of \$5 million. The project is expected to generate cash flows of $2 million in year 1,$3 million in year 2, and $4...

Describe the presentation aid that you would construct to best illustrate the data for each of the following situations. Create your own title for each one.Write an introduction to the aid and write...

Explain why it is important to learn and use your receivers name during a conversation. (Objective 2)

Why is it important to create a mental image of the person you are speaking with on the phone? (Objective 2)